ZJ Automotive Co., Ltd.

Date of Prospectus: March 16, 2026

ZJ Automotive IPO: Detailed Investor Analysis, Growth Story, and Market Outlook

ZJ Automotive is set to debut on the Hong Kong Stock Exchange with a highly anticipated initial public offering. The company, a leader in HUD (head-up display) solutions for the automotive industry, is targeting investors with a growth-driven story. This comprehensive article covers the IPO structure, offer details, use of proceeds, cornerstone allocations, financial health, risk factors, book quality, and more—providing essential insights for investors, analysts, and market watchers.

IPO Snapshot

IPO Symbol: Not explicitly stated in the prospectus.
Offer Price Range: HK\$42.00 – HK\$48.00 per H Share
Total Number of Shares Offered: 16,226,500 H Shares (Hong Kong Public Offering: 1,622,650; International Offering: 14,603,850)
Expected Post-IPO Outstanding Shares: 123,395,266
Expected Market Capitalization at Listing: Over HK\$4 billion (at the low end of the price range)
Listing Date: Trading of H Shares expected to commence on Tuesday, March 24, 2026
Application Period: March 16, 2026, 9:00 a.m. to March 19, 2026, 12:00 noon (Hong Kong time)
Websites for Prospectus and Announcements: www.hkexnews.hk, www.zjautomotive.com

Offer Size and Structure

• Hong Kong Public Offering: 1,622,650 H Shares (10% of total offer, subject to reallocation)
• International Offering: 14,603,850 H Shares (90% of total offer, subject to reallocation)
• Cornerstone Investors: Up to 16.13% of the Offer Shares at the low end of the price range
• Public Float: At least 25% of total shares post-IPO, with the free float meeting or exceeding regulatory requirements

Use of Proceeds: Fueling R&D and Strategic Growth

ZJ Automotive’s IPO is clearly growth-driven. The company details a robust allocation of proceeds to innovation, expansion, and strategic partnerships:

• R&D and Product Development: HK\$285.6 million (43.2%) for development and commercialization of AR-HUD, W-HUD, and new-generation products
• Manufacturing Capacity Expansion: HK\$89.3 million (13.5%) to build up intelligent manufacturing and supply chain capabilities
• Upgrade and New Solutions: HK\$72.1 million (10.9%) for collaboration with industry value chain participants
• Working Capital and General Corporate Purposes: HK\$66.2 million (10.0%)

This allocation underscores an aggressive investment in future capacity and technology, not deleveraging, positioning ZJ Automotive as a high-growth play in the automotive HUD sector.

Placement and Issuance Breakdown

• Global Offering: 16,226,500 H Shares (1,622,650 Hong Kong Public; 14,603,850 International)
• Cornerstone Placement: Up to 16.13% of Offer Shares at the low end of the indicative range
• Pre-IPO Investors: All subject to 12-month lock-up post-listing
• Employee/Management Allocation: Not specifically stated

Investor Participation and Book Quality

Cornerstone Investors:

Total Cornerstone Commitments: HK\$109.95 million, 16.13% of Offer Shares at the low end.
Assessment: The presence of named cornerstone investors with lock-up periods and substantial commitments signals solid institutional support and may bolster listing-day performance.

Deal Parties and Structure

Joint Sponsors: Haitong International Capital Limited, CITIC Securities (Hong Kong) Limited
Global Coordinators, Bookrunners, Lead Managers: Haitong International Securities Company Limited, CLSA Limited, BOCI Asia Limited, Futu Securities International (Hong Kong) Limited, Patrons Securities Limited
Underwriting: Full underwriting for both Hong Kong Public and International tranches. The Hong Kong Public Offering is fully underwritten on a conditional basis.
Stabilization/Greenshoe: Not specifically stated.

The lineup of leading international and Chinese investment banks and securities firms supports the credibility of the offer and may help underpin listing-day stability and aftermarket support, based on the prospectus’s explicit listing of these parties.

Company Overview

ZJ Automotive is a technology-driven company focused on the research, development, and commercialization of advanced head-up display (HUD) solutions for the automotive sector. The company’s core product lines include AR-HUD, W-HUD, and next-generation HUD technologies designed to enhance driving safety and user experience. Its revenue model is driven by the sale and licensing of HUD solutions to automotive OEMs and suppliers, with a focus on global markets.

• Key Products: AR-HUD, W-HUD, new generation HUDs
• Customers: Automotive OEMs and suppliers
• Geographies: Substantially all revenue sourced from China

Industry & Market Position: ZJ Automotive is positioned as a leading innovator in the optical imaging and HUD space, with strategic plans to consolidate its market position through R&D and industry collaborations. The company’s technological capabilities are reinforced by ongoing investments in product development and capacity expansion.

Financial Health and Key Metrics

Recent Financials:

Profitability: The company expects a significant increase in net loss for 2025 compared to 2024, primarily due to fair value loss related to redemption liabilities on preferred equity issued during pre-IPO financing. The company’s net liabilities are expected to be offset by the reclassification of these redemption liabilities upon listing, improving its balance sheet.

Cash Flow & Debt: No off-balance sheet commitments or arrangements; listing proceeds to provide substantial liquidity for growth initiatives.

Market Position and Competitive Advantages

Technological Leadership: ZJ Automotive leverages advanced R&D to maintain a leadership position in China’s rapidly growing automotive HUD market.
Strategic Collaborations: Plans to build strategic partnerships across the optical imaging, near-eye display, and wearable product value chains.
Industry Validation: Multiple rounds of Pre-IPO investments by a range of institutional investors, with all special rights (including anti-dilution and tag-along) terminated upon listing.

Management Team

The core management includes Mr. Zhang Tao, Mr. Zhang Bo, Mr. Wang Zhenggang, Mr. Lyu Tao, Ms. Ye Jing, Ms. Guo Hui, and Ms. Lyu Xianglian. Their backgrounds are referenced as seasoned in the industry, with relevant experience in equity investment, R&D, and corporate strategy.

Trends, Timing, and Environment

Sector Trends: The automotive industry is undergoing significant transformation, with increasing adoption of HUD and advanced driver-assistance systems (ADAS). ZJ Automotive’s focus on AR and next-generation HUDs aligns with sector momentum and anticipated demand from OEMs.

IPO Timing:

• Offer opens: March 16, 2026, 9:00 a.m.
• Offer closes: March 19, 2026, 12:00 noon
• Price Determination Date: On or before March 20, 2026
• Result Announcement: On or before March 23, 2026
• Listing/Trading: March 24, 2026

Regional and Macro Environment: Substantially all revenue is sourced from China, and the company operates within the regulatory frameworks and economic conditions of the PRC. No negative macro indicators are highlighted in the prospectus.

Recent Company Developments: No material adverse change in business or operations since September 30, 2025.

Market Conditions: Based on disclosed data, the market conditions appear favorable, with strong institutional participation, robust sector growth drivers, and no recent adverse regulatory or economic events.

Risk Factors

Key Risks:

• No assurance of an active trading market for H Shares post-listing; 86.85% of shares subject to 12-month lock-up
• Potential immediate dilution for IPO investors if offer price exceeds net tangible book value per share
• Significant net losses expected for 2025 due to fair value adjustments on redemption liabilities
• Reliance on China for revenue exposes the company to PRC economic, political, and regulatory risks
• Regulatory approval risks, including CSRC and Hong Kong Stock Exchange requirements for overseas listings
• Dependence on a small number of key shareholders and potential changes in controlling shareholder group post-IPO
• Potential impact from industry competition, technological changes, and supply chain disruptions

Growth Strategy

ZJ Automotive’s growth plan is anchored in:

• Commercializing new AR-HUD and next-generation solutions
• Expanding manufacturing and supply chain capacity
• Investing in R&D for product upgrades and new solution development
• Pursuing strategic collaborations within the optical imaging and wearable technology ecosystem
• Deploying IPO proceeds directly to fund these initiatives over the next 24–36 months

Ownership, Lock-ups, and ESOPs

Pre- and Post-IPO Shareholding Structure:

• Controlling Shareholder Group (pre-IPO): 44.66% (including key management and concert parties)
• Post-IPO Controlling Group: 38.79%
• Pre-IPO Investors: Lock-up of 12 months post-listing
• Cornerstone Investors: Lock-up of 6 months
• All other existing shares: Subject to 12-month lock-up post-listing

Valuation and Peer Comparison

The prospectus does not provide peer company symbols or financial metrics for direct comparison. All valuation commentary is thus omitted as per the coverage checklist.

Dividend Policy

No explicit dividend policy, payout ratio, or timetable is stated in the prospectus. Investors should assume the company intends to reinvest profits to fuel growth in the near term.

Recent IPOs and Sector Performance

No reference to concurrent IPOs or sector performance tables is provided in the prospectus.

Research and Opinions

No price targets, analyst commentary, or formal opinions are included in the prospectus.

IPO Allotment Result

Final subscription levels and exact oversubscription metrics will be published on or before March 23, 2026 on www.hkexnews.hk and www.zjautomotive.com.

Listing Outlook

Based strictly on disclosed facts:

• Strong institutional cornerstone participation and underwriter roster suggest solid demand and aftermarket support
• Growth-driven use of proceeds and sector tailwinds may support positive first-day trading
• Significant lock-ups on existing shares may reduce immediate selling pressure, supporting price stability
• However, investors should note net losses and the potential for dilution, and monitor book-building and allocation results as published by the company

Inferred Range: If the offer prices at the mid-to-lower end of the range and the book is well covered, a modest premium to issue price could be realized on debut, though volatility may persist as the company works toward profitability.

How to Apply

Application Channels:

• HK eIPO White Form service: www.hkeipo.hk (for physical H Share certificate, allotted in applicant’s own name)
• HKSCC EIPO channel: Through broker or custodian who is a HKSCC Participant (shares credited to CCASS)

Application Window:
Monday, March 16, 2026, 9:00 a.m. – Thursday, March 19, 2026, 12:00 noon (Hong Kong time).
Eligibility: Applicants must be 18 or older; Hong Kong address required for White Form service.

Websites for Documents: www.zjautomotive.com, www.hkexnews.hk

For further details, refer to the application instructions on the company and exchange websites.